Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $22 per unit. Additional information is as follows: Variable product cost per unit$19 Variable administrative cost per unit 11 Total fixed overhead 13,500 Total fixed administrative 21,000 Using the variable cost method, what markup percentage to variable cost should be used?
A. 92%
B. 71%
C. 80%
D. 76%
E. 81%
Answer: E
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